Allianz Partners, a leading Insurance and Assistance company, is expanding its range of services with coverages such as rental default, home recovery, and legal defense service. This approach is designed to protect both property owners and tenants in a market increasingly strained by rising prices.
The increase in demand for rental housing in Spain has caused a significant rise in rental prices. According to Fotocasa data, the rental price has increased by 90% since 2015. Currently, 12% of the population over 18 years old is looking for rental housing, which has led to a price increase of up to 14% in some areas of the main cities, especially in September due to the increase in demand.
The reasons for this trend are closely related to the real estate market. The increase in property prices and the difficulty of accessing mortgages due to rising interest rates have led many families to opt for renting, as they cannot afford to buy a home.
In this context of rising prices, there is a risk that tenants may not be able to pay the monthly rent to the landlord, leading landlords to seek guarantees that make the rental market more flexible. Rental default insurance, such as that offered by Allianz Partners, is one of those guarantees, assuming the payment of rents that the tenant fails to pay.
Additionally, this insurance allows the landlord to quickly reclaim their property to put it back on the rental market, thanks to the legal defense coverage provided by an in-house team of lawyers. According to a company study, more than half of landlords consider this coverage the most important when purchasing rental default insurance.
The insurance also includes telephone legal advice for housing-related issues, document drafting, criminal defense, coverage for acts of vandalism, non-payment of utilities such as water, electricity, and gas, cleaning of the property after eviction, and supplemental civil liability coverage. Additionally, Allianz Partners covers the cost of locksmith services and lock changes.
A significant advantage highlighted by customers is the possibility for the insurer to evaluate different tenant candidates and select the most suitable one, providing greater security to the landlord. According to Inmaculada González, responsible for Alternative Channels at Allianz Partners, “rental default insurance is a formula that benefits the landlord, but also the tenant, as it facilitates entry into the rental market for groups that would otherwise have greater difficulties, such as young people, families with children, or foreigners.”
The adoption of this insurance has increased by 7% in the first six months of the year compared to the same period last year. Within nearly 2,000 Allianz Partners sales points, Allianz Insurance Agents have experienced a 14% growth compared to last year, reflecting an increase in demand.
“The rental default insurance is a guarantee for policyholders because it not only supports the landlord, but also the tenant, facilitating the transaction and offering security and protection to both parties,” concludes González.
Referrer: MiMub in Spanish
